The demand for personal loans has grown over the years for low-income families and borrowers, for consumption purposes. But sadly, this space in India is highly underserved. The chances of availing monetary assistance for the underserved have become thinner, as, amid unemployment, business shutdowns, and paycuts, banks and NBFCs have tightened their purses. The traditional lenders are wary of lending to people who are new to credit or have a limited credit history.
In such grim times, digital lending startups have bridged the gap of lending by offering loans to the underserved sector.
According to Statista, digital lending is one of the fastest-growing fintech segments in India that grew from $9 billion in 2012 to nearly $110 billion in 2019. The digital lending market will reach a value of around $350 billion by 2023. The fintech startups and non-banking financial companies (NBFC) to be the main drivers of the digital lending sector.
The new-age digital platforms differ from a traditional bank’s archaic process of sanctioning loans by providing a simple and intuitive onboarding procedure and faster loan disbursals.
One such digital lending platform that caters to India’s underserved market is RupeeRedee. Powered by Amazon Web Services (AWS), RupeeRedee makes digital lending safe, quick, paperless, and hassle-free.
What is RupeeRedee?
Founded in September 2018, RupeeRedee is a new-age B2C financial services platform that leverages technology to make lending quick and easy. Its AWS-powered platform facilitates instant small ticket and short-term personal loans within a 10-minute turnaround through the website and mobile app for salaried and self-employed individuals addressing their daily and instant needs. To date, it has enabled 1.5 lakh credit transactions.
RupeeRedee has a captive NBFC with FincFriends Private to be the first 100% digital NBFC registered with RBI.
According to Statista, digital lending is one of the fastest-growing fintech segments in India that grew from $9 billion in 2012 to nearly $110 billion in 2019.
How does RupeeRedee facilitate quick digital lending to 1.3 Billion Indians?
Out of the 800 million debit cardholders, a fraction of them are credit cardholders. Though the majority of them have a steady income, they do not have access to formal credit sources forcing them to rely on informal credit sources. By offering small-ticket loans RupeeRedee is bridging a gap in the market and also building a credit history to enhance an individual’s creditworthiness.
RupeeRedee processes loan requests 24×7. This is a blessing for the underserved ones as sometimes they might need instant loans due to an emergency. Also, looking at the current human health crisis, people would require money to fulfill medical expenses.
Many MSMEs can benefit from this instant sanction of loans or cash which they might use for business transactions to be done beyond office hours.
Borrowers if due to some reason are not able to pay the loan, RupeeRedee has an extension facility wherein one can extend the repayment date by a minimum of 5 days by paying an extension fee.
What products does RupeeRedee offer?
RupeeRedee operates with multiple NBFCs in the background to facilitate short-term personal loans coupled with PhyGital, POS (Point-of-Sale), LaaS ( Lending-as-a-Service), and brokerage services.
How to apply for a loan in RupeeRedee?
RupeeRedee has simplified the loan process by keeping minimum formalities. Here are the documents required:
- Aadhaar, Driving Licence, Voter Id
- Latest Photograph
- PAN Card
- Bank Statement/ Access to bank account details
The tech stack of RupeeRedee
RupeeRedee has several backend systems such as loan origination system, CRM (Customer Relationship Management), loan management system, and collection system. They use Linux, Windows, and other relational database systems like MySQL, MS-SQL. The lending platform works with more than 40 cloud servers with a combination of production, pre-production, and development servers.
What lies ahead of the digital lending platforms in India?
The digital lending sector needs to align itself to changing consumer preferences and mould its products to suit the consumers’ requirements. The digital lending space will have ample business opportunities for lending the MSMEs that have been cash-strapped in the pandemic.
With a deluge of affordable smartphones and falling data prices penetrating rural areas, the digital lending sector is expanding the gambit of financial inclusion to tech-savvy youngsters, low-income families for instant short-term credit availability. Digital lending platforms need to offer convenience by creating minimum formalities and a hassle-free loan approval process.